Quantities PurchasedQuantities PurchasedIncomePricesGood XGood Y$30,000Px = $6, Py = $3220 50,000Px = $6, Py = $4510 Refer to Table.Using the information in the table, calculate the income elasticity of demand for good X and characterize the good. Use the midpoint formula.Can you calculate the income elasticity of demand for good Y? If you can, show your calculation and characterize the good. If you cannot, explain why.

Given Income Y1 = $30000 Y2 = $50000 Quantity of Good X Q1 = 2 Q2 = 5

Answered: Quantities Purchased Quantities…

Essentials of Economics (MindTap Course List)

8th Edition

ISBN:9781337091992

Author:N. Gregory Mankiw

Publisher:N. Gregory Mankiw

Chapter5: Elastic And Its Application

Section: Chapter Questions

Problem 7PA: Suppose that your demand schedule for pizza is as follows: a. Use the midpoint method to calculate...

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		Quantities Purchased	Quantities Purchased
Income	Prices	Good X	Good Y
$30,000	Px = $6, Py = $3	2	20
50,000	Px = $6, Py = $4	5	10

Refer to Table.

Using the information in the table, calculate the income elasticity of demand for good X and characterize the good. Use the midpoint formula.

Can you calculate the income elasticity of demand for good Y? If you can, show your calculation and characterize the good. If you cannot, explain why.

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